Tire Recycling Business Plan: Turn Waste into Wealth

Tire recycling business is a good and eco-friendly business that converts old waste tires into usable materials. Moreover, the main purpose of recycling these tires is to reduce the environmental pollution caused by waste tires. Because discarded old waste tires take hundreds of years to decompose, so by recycling, you are not only makes money. But you are also making a difference, Also, this tire recycling is a growing industry. The tire recycling industry in India is worth over ₹5,000 crore and grows every year. Each year, over 100 crore tires reach the end of their life cycle, creating a huge untapped opportunity. So, if you are thinking of starting a recycling business of your own, starting a tire recycling business can be a profitable and rewarding venture. So, here in this article, we will take a detailed look at how to start a tire recycling business.

Market Scope for Business

The market scope is very broad and it has a solid demand and promise. Because, the vehicle population is increasing rapidly globally, especially in India. Every year, the country generates over 3 crore discarded tires, and this number is set to rise as India’s vehicle population continues to explode. Most of these end up in landfills or are illegally burned, causing pollution. But the demand for recycled rubber products is growing rapidly in industries like construction, footwear, road construction, and artificial turf manufacturing. Yes, globally, the market is expected to reach $7.32 billion by 2031. In India, the market is estimated to be worth Rs 150 billion and has significant growth potential. So whether you are in a metropolitan city or a secondary city, starting a tire recycling business is a very profitable business.

Types of Products get from Business

Now let’s talk about what you can actually get from old tires. Tire recycling is not just about shredding rubber. From it, you can get crushed rubber, rubber tiles and mats, pyrolysis oil that can be used as industrial fuel, steel wire that can be sold as scrap. Moreover, automotive and footwear manufacturers, flooring companies, plastic molding businesses, and even exporters are looking for reliable recycled rubber suppliers. So, by selling to them, you can better your business and generate revenue in many ways with a solid long-term demand both domestically and internationally.

Total Investment for Business

Now let’s look at the investment for this business. The initial investment required to start a small or a medium-sized tire recycling plant will be around ₹20 lakh to ₹50 lakh. Which varies depending on the scale of the recycling system you choose and the location of your plant. Also, this includes shredding the tires, crumb rubber production or pyrolysis, major cost items include machinery, land, labor and raw materials, and working capital for operations. So, you can start small initially and scale up your plant as you gain customers.

License and Permits for Business

Okay, now let’s talk about licenses and permits. First, you need a Udayam Registration (MSME) which will help you get government subsidies, easy loans and other incentives. Second, you need a Pollution Control Board (PCB) License as tire recycling can generate emissions and waste, so you need to get approval from the Pollution Control Board. Next, get a Factory license if you’re employing more workers. And also need GST registration for billing and taxes. Also, a fire safety certificate is a must, as there is a risk of fire in tire processing. Finally, depending on your local municipality or panchayat, a trade license may also be required.

Space for Business

Next, when setting up your tire recycling unit, choosing the right location is very important – so, you should look for a location that is available in an industrial zone or on the outskirts of the city and has zoning regulations favorable to manufacturing operations. Most importantly, make sure that the location you choose has basic amenities like electricity, water supply, easy truck access for loading and unloading, and ventilation. In terms of space requirements, a small-scale operation can operate in around 2,000 to 5,000 square feet. Or a medium-sized or pyrolysis plant may require 10,000 square feet or more.

Getting Raw Material

One of the biggest advantages of starting a tire recycling business is how easily you can get your raw materials, used tires. Yes, you can easily get your raw materials from garages, auto repair shops, transportation companies, and municipal landfills. You can even partner with tire dealers who need to dispose of their old inventory. Over time, as your operations grow, you will be able to build a network that will provide you with a steady flow of raw materials.

Required Machines for Business

Now let’s talk about the machinery for setting up this business, . The type of machinery you need will depend on the products you want to make from recycled tires. First, you will need a basic tire shredding machine. Next, you will need a tire cutter machine, a steel wire remover machine, a granulator or crumb rubber machine, magnetic separators, and a vibrating screen machine. The price of these machines varies depending on the capacity and level of automation. You can inquire and buy these machines from local manufacturers or from websites like Indiamart, Tradeindia and Alibaba.com. Make sure to buy from a trusted manufacturer with installation and training support.

Tyre Recycling Process

First, the process begins with the collection of used tires from garages, transportation companies, and junkyards. Next, the tires are cleaned to remove dirt and debris, and the clean tires are then fed into a primary shredder machine. Here, it cuts them into strips or pieces, usually about 2 to 6 inches in size. After shredding, the pieces pass through a magnetic separator, which pulls out the steel. This scrap steel is collected and sold separately, adding additional revenue to your business. Next, the rubber pieces pass through a granulator, which breaks them down into small pellets or a fine powder called crumb rubber. Once you receive your final products, such as crumb rubber, carbon block, or rubber mulch, they are packaged and stored for delivery.

Marketing Your Recycled Products

Like all businesses, marketing is key to the success of this tire recycling business. As we mentioned earlier, many industries are increasingly looking for environmentally friendly and cost-effective raw materials. So, you can first approach shoe manufacturers, construction companies, flooring companies, plastic molding businesses, and sports facility builders. Next, use platforms like IndiaMART, Justdial, and TradeIndia to list your products. Social media can also be powerful. There is also international demand, especially in regions like the Middle East and Southeast Asia, so you can export there as well. Finally, to build trust with your customers, you can also offer sample products to potential wholesale buyers.

Profit from Business

Now for the part that everyone is waiting for, how much profit can you make? On an average, once a small recycling unit is fully operational and you have a stable supply of raw materials and buyers, you can expect profit margins of 20% to 40%. For example, if you set up a basic shredding and crumb rubber unit and process about 5 tonnes of tyres per day, you can earn an average monthly revenue of ₹8 to ₹12 lakhs, depending on your selling price and customer base. After deducting expenses like electricity, labour, raw material transportation and maintenance, your net profit would be ₹1.5 to ₹4 lakhs per month. However, your profit margins will vary depending on the timing and scale.

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